8 Employment Law Tips to Know Before Starting a Business

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					8 Employment Law Tips to Know Before
Starting a Business
As a small business, it is always important to know about employment law before hiring
your first employee. You may save yourself from spending thousands of dollars on
lawyers and settling. We asked a number of employment law experts what they think is
the most important details that can be missed among small businesses and startups? This
is what they had to say:

Jason M. Shinn of E-Business Counsel
“Due Diligence: Often times businesses will not conduct an adequate interview, follow
up with reference checks, or otherwise engage in other hiring due diligence before
making a hiring decision. This can lead to unpleasant surprises and potential liability
down the road for such claims as negligent hiring. Entrepreneurs and new businesses
really need to approach the hiring process in a manner similar to starting a new business –
with a plan.”

Donna Ballman of Donna M. Ballman, P.A.
“The most common mistakes I see small employers make are misclassifying employees
as independent contractors; assuming that anyone who is salaried is exempt from
overtime; badly drawn or overbroad non-compete agreements; and failing to have
handbooks that are given to every employee. These are mistakes that even big employers
make, but new employers make assumptions about employment laws that are wrong –
sometimes to catastrophic effect. My best advice is to consult with an employer-side
employment lawyer to get your policies and procedures in place and make sure you’re
doing it right.”

Chaim B. Book, Esq. of Moskowitz & Book, LLP
“The FLSA and similar state law require paying employees minimum wage and
overtime even for the smallest employers. Very dangerous area for small businesses.
Penalties are stiff and you are responsible for other side's attorneys fees. Restaurant
owners should not mistakenly believe that tips make up for underpaying staff.”

Thomas J. Simeone, Esq. of Simeone & Miller, LLP
“Have a written employment manual - so that you control what your policies are,
rather than have them later discerned (possibly by a court) based on a sampling of your
practices. Remember that even though your manual will say that it does not create an
employment contract (which all good ones do), it basically does constitute a contract
because if you violate your own policy, that can be considered employment



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discrimination. Thus, write into it discretion, when needed, and make sure the rules are
something you can meet as an employer.”

Jonathan S. Goodgold, Esq. of Goodgold Law LLC
“Whether you will offer benefits. There are costs and tax benefits for doing so. The
benefits must be equal across the board. And speaking of equality and fairness, every
employee needs to be treated equally and fairly and the policies implemented in a fair
manner. Some employers may have biases, but in the employment context, if they are
made known, you will open yourself up for lawsuits.”

Charles A. Krugel Labor & Employment Law & HR Counseling on
Behalf of Management
“One of the most important details that any startup misses is that practically all
businesses, with very limited exceptions, are liable for unemployment and workers
compensation. That is, almost all businesses are subject to some type of unemployment
and workers compensation tax. With unemployment compensation, the tax is directly
levied by the government. With workers compensation, the tax is usually levied in the
form of insurance premiums. Most startups don't factor these taxes into their operating
expenses. Consequently, when they're hit with their first claims, or when approached by
vendors trying to sell them insurance or some sort of claims processing service, the
owner becomes overwhelmed and confused.”

Randall Crane of Law Office of Randall Crane
“Failing to get workers compensation insurance. Any injury to an employee on the job,
even a small soft tissue injury can involve huge costs. Insurance companies have ways of
controlling the costs, but a small start up business lacks the time and expertise.”

Andrew Fulton of Ann Kontner
“All U.S. employers must complete and retain a Form I-9 for each individual they hire
for employment in the United States. This includes citizens and noncitizens. On the form,
the employer must examine the employment eligibility and identity document(s) an
employee presents to determine whether the document(s) reasonably appear to be
genuine and relate to the individual and record the document information on the Form I-9.
This must be done within three business days of hire. Penalties for not completing the
forms properly can range from $110 per violation, up to a maximum of $1,100 per
violation. Firms who show a pattern of hiring unauthorized workers are liable for
criminal penalties of as much as $3,000 per employee and may be subject to six months
in prison.”




"© 2011 Apptivo Inc. All rights reserved
It sounds as if making assumptions is not the best way to start a business. Find out more
about all the facts and details on employment law before starting a business. Who better
to get advice from than real lawyers and experts? Find them on the related links to their
name.




"© 2011 Apptivo Inc. All rights reserved

				
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Description: As a small business, it is always important to know about employment law before hiring your first employee. You may save yourself from spending thousands of dollars on lawyers and settling. We asked a number of employment law experts what they think is the most important details that can be missed among small businesses and startups? This is what they had to say: